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Something to think about on National Insurance Awareness Day: 37% of adults skip life insurance

Insurance Forums Staff

Did you know Wednesday, June 28, is National Insurance Awareness Day?

Created (in theory, we suppose) with the intention of encouraging people to review their life, health, auto, home and supplemental insurance coverage (or lack thereof), the generically titled “National Insurance Awareness Day” remains somewhat shrouded in mystery, as nobody seems to know who first made an effort to declare June 28 as the day to promote awareness of insurance needs.

But that doesn’t mean it can’t be a good excuse to bring up the need for insurance coverage, or to point out statistics revealing that so many people lack proper coverage.

For instance, a new survey from Austin, Texas-based insuranceQuotes.com – released not coincidentally just in advance of National Insurance Awareness Day – finds that 37% of adults do not have life insurance. And while expense was the most commonly cited reason for not purchasing a policy – with 59% of those without a policy saying so – data revealed that respondents still wouldn’t buy coverage, even if money weren’t an issue. But why?

“Many adults, particularly Millennials, believe that since they’re currently healthy, they do not need life insurance. But rather than being viewed as an expense, life insurance should be viewed as an investment as well as a safeguard, for your spouse and children,” said Laura Adams, senior insurance analyst at insuranceQuotes. “There are many affordable policies out there, and unlike other insurance types, life insurance covers losses from an event that is inevitable.”

The study found that most non-policy holders:

  • Largely belong to the Millennial generation: 65% in the 18-29 age bracket do not have life insurance policies compared with 29% in the 30-49 age bracket and 26% in the 50-64 bracket.
  • Are single: 23% of those with life insurance policies are single, while 75% are married.
  • Have less formal education: Only 26% of those without policies are college graduates.
  • Make less money: Of households with an annual income of $75,000 or more, 78% have life insurance policies; of those with an income $50,000 to $75,000, 74% have life insurance policies.

Those who don’t have a policy say they’d spend extra income on the following before buying affordable life insurance:

• Purchase food/utilities (76%)

• Put money in savings (71%)

• Pay down debt such as car loan or student loan (67%)

• Donate to a charity (49%)

“The longer you wait to get life insurance, the more expensive policies become – so I always recommend to young adults that they do their best to get a jump start. When determining a policy, top factors to consider include your own personal health, loved ones, family history, retirement and estate taxes.

“Also worth considering, especially for consumers concerned about cost, are policies that convert life insurance into an income annuity, supplementing your retirement savings,” added Adams. The full report – which includes additional data, tips and insights – is available here.

Insurance broker UIG also likes to acknowledge the National Insurance Awareness Day, and isn’t afraid to have a little fun with it. They’ve come up with the following list of ideas for how to celebrate this Wednesday:

• Host an Insurance Awareness Day line dance or flash mob

• Sponsor a safe driving course

• Coordinate an insurance awareness scavenger hunt

• Set up a wrecked car with some kind of commercial business reference, e.g., pizza delivery, outside the agency with a sign, “Are you insured?”

• Get a pizza place to tape your business card or a flyer on every pizza box they deliver and offer to promote them to your clients or list them as a partner on your website

• Shoot a humorous video highlighting overlooked insurance tips clients should know

• Host an agency contest — whoever adds the most policies in a week, gets a paid day off

• Support a local non-profit that you are passionate about and encourage locals to match

• Dress like an insurance agent day — play up the stereotype, the less stylish the better

• Deliver baked goods or branded swag to VIP commercial insurance partners around town

• Blog about some of the oddest insurance claims your agency has ever received

• Do a publicity stunt with a partner or town (fire drill) to draw awareness to insurance

• Send out an email blast, notifying people of the date with a seasonal call to action

• Host a “junk the junker” car demolition fundraiser while promoting auto insurance

“With a little creativity and a keen grasp of your community, the ideas are really endless,” say the people at UIG, which interestingly, also offers Zombie Insurance!

If you happen to be doing anything to commemorate National Insurance Awareness Day, you are encouraged to use the hashtag #NationalInsuranceAwarenessDay on social media.



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